New Dehi: Indian low-cost carriers may have been apprehensive of ensuing competition as AirAsia readies for its India takeoff, but they seem to have successfully dealt with Tony Fernandes' airline on the Southeast Asian routes.
AirAsia shut operations to four Indian cities over the past four years, going by its rigid stand of flying only on routes that become profitable within a year. While the airline cites high airport charges for its woes in operating to those cities its rivals from Southeast Asia and India have managed to expand on those routes by adding new flights and capacity.
In 2011, AirAsia stopped operations to Hyderabad, while its long-haul lowcost arm AirAsia X closed operations to New Delhi and Mumbai in 2012 and Thai AirAsia stopped flights to Kolkata starting this month. All these moves followed hikes in airport charges.
"The AirAsia group's philosophy is to make sure the route is profitable within 12 months. If it's not, it will not operate the route," a former AirAsia executive told ET.
15/02/14 Debabrata Das/Economic Times
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AirAsia shut operations to four Indian cities over the past four years, going by its rigid stand of flying only on routes that become profitable within a year. While the airline cites high airport charges for its woes in operating to those cities its rivals from Southeast Asia and India have managed to expand on those routes by adding new flights and capacity.
In 2011, AirAsia stopped operations to Hyderabad, while its long-haul lowcost arm AirAsia X closed operations to New Delhi and Mumbai in 2012 and Thai AirAsia stopped flights to Kolkata starting this month. All these moves followed hikes in airport charges.
"The AirAsia group's philosophy is to make sure the route is profitable within 12 months. If it's not, it will not operate the route," a former AirAsia executive told ET.
15/02/14 Debabrata Das/Economic Times
